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RCL: Ship Deployment and Passenger Sourcing 2013

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Royal Caribbean Cruises (RCL) laid out ship deployment for its different brands for 2013 on today’s Q3 earnings call. The biggest increase comes in the Asia-Pacific region, while the biggest decrease is in Europe.

For 2013, RCL ships will have 44 percent of their capacity in the Caribbean, up 4 percent from last year.

Europe will see a 10 percent decline to 27 percent of the company’s total capacity for the year.

RCL deployment in Asia-Pacific will be up 46 percent, representing 10 percent of total capacity.

Alaska will be up 1 percent for total capacity share of 4 percent. All other markets, representing 15 percent of RCL’s deployment will be down 7 percent.

Year-over-year, capacity will be up 1 percent in total.

While European markets were soft in 2012, especially Southern Europe, RCL was able to maintain its ratio of North American passengers sailing on its ships in Europe at about 25 percent. While the brands had expected to attract more passengers from the U.S. to compensate for soft demand in Europe, according to Royal Caribbean International President and CEO Adam Goldstein, they were instead able to generate more passengers from Latin America and Asia.

As for the changes in Europe next year, RCL will have 13 percent of its capacity in the Western Mediterranean, down 20 percent from this year; 8 percent in the Eastern Mediterranean, down 9 percent from this year, which was already down from last year, and 6 percent in Northern Europe, including a 28 percent increase in the Baltic.

For next year, the biggest unknown variables are Europe and fuel pricing, according to Brian Rice, vice chairman and CFO.